Question: Consider a one-period model. Suppose that the produc- tion function is given by zF(K, Nd ) = z (K + 2Nd ), with z =

Consider a one-period model. Suppose that the produc- tion function is given by zF(K, Nd ) = z (K + 2Nd ), with z = 1 and K = 0. In addition, G =4 and h = 10. 1. 8 Can T be less than 4 baskets? Explain. 2. 4 With N on the horizontal axis and Y on the vertical axis, sketch the production function. 3. * 2 How much is the marginal product of labor? 4. 4 With I on the horizontal axis and C on the vertical axis, sketch the PPF of this economy
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